North Dakota’s insurance regulatory landscape received a substantial overhaul with the recent enactment of House Bill No. 1088. Signed into law by the governor, HB 1088 amends Section 26.1-01-03.3 of the North Dakota Century Code, clearly defining and strengthening penalties associated with insurance violations.
Under this newly enacted legislation, violators are now subject to administrative monetary penalties of up to $10,000 per infraction. The law further empowers North Dakota’s Insurance Commissioner to require restitution payments directly to individuals harmed by violations. Importantly, the commissioner’s restitution authority specifically excludes the power to adjudicate whether obligations exist under insurance policies or to compel insurers to pay contested claims - these remain strictly within judicial jurisdiction.
HB 1088, introduced by the Industry, Business and Labor Committee at the request of the Insurance Commissioner, underscores North Dakota’s enhanced commitment to consumer protection and industry accountability. Garnering significant bipartisan support, the bill passed with overwhelming majorities in both chambers: a 76-13 vote in the House and a decisive 45-1 vote in the Senate.
Insurers operating in North Dakota must now carefully review compliance practices and reinforce internal oversight to align with these stringent new regulatory standards. This legislation sends a clear message from state regulators: adherence to insurance regulations is non-negotiable, and violations will incur significantly increased financial consequences.
